PPF Withdrawal Rule: Public Provident Fund is a better option for long term investment. In PPF, where the interest rates are high, tax exemption is also given on the money invested, the interest earned on it and the amount received on completion of the maturity period. For this reason it is very popular among investors.
The maturity period of PPF is 15 years. Some people do not know that the money invested in PPF cannot be withdrawn in the middle. But it is necessary to clarify here that even before the completion of the maturity period, it can be closed under certain circumstances.
Under what circumstances money can be withdrawn prematurely
PPF account holder can withdraw money in case of illness of spouse and children. Apart from this, account holders can also withdraw full money from the PPF account for the education of their children. Even if an account holder becomes a Non-Resident Indian (NRI), he can close his PPF account.
You can withdraw money only after 5 years Any account holder can close the PPF account only after completion of 5 years of opening. If it is closed before the maturity period, 1% interest will be deducted from the date of account opening till the date of closure. If the account holder dies before the maturity of the PPF account, then this five-year condition does not apply to the nominee of the account holder. The nominee can withdraw the money before five years. The account is closed after the death of the account holder. Nominee is not entitled to continue this.
What is the account closure process
If an account holder wants to withdraw money before the maturity period, then he has to fill the form and submit it to the post office or bank where he has a PPF account. Photocopy of passbook and original passbook is also required. If the PPF account is closed due to the death of the account holder, then interest accrues till the end of the month in which the account is closed.
PPF interest rate
The current interest rate on PPF account is 7.1 percent per annum. A minimum of Rs 500 and a maximum of Rs 1.5 lakh can be deposited in PPF in a financial year. An individual can open only one PPF account in his own name.
